Jane and David have been involved in an ongoing dispute - VCE - SSCE Legal Studies - Question 5 - 2010 - Paper 1
Question 5
Jane and David have been involved in an ongoing dispute. They have been advised to use either mediation or arbitration as a dispute resolution method.
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Worked Solution & Example Answer:Jane and David have been involved in an ongoing dispute - VCE - SSCE Legal Studies - Question 5 - 2010 - Paper 1
Step 1
Similarities
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Answer
Both mediation and arbitration involve a third party who is appointed and operates independently. This third party remains neutral and unbiased throughout the process. Additionally, both methods are recognized by various courts, including the Magistrates' and Supreme Courts.
Both mediation and arbitration may involve legal practitioners representing both sides, and ultimately, both can result in a final decision that is binding, though the nature of that decision differs.
Step 2
Differences: The Role of the Third Party
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In mediation, the third party does not participate in making the decision and solely facilitates the discussion. In contrast, in arbitration, the third party actively makes the final decision after hearing from both sides.
Step 3
Differences: Evidence and Flexibility
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Evidence in arbitration is formally presented and structured, while in mediation, parties can be selective regarding the evidence shared, allowing for more flexibility in discussions.
Step 4
Differences: Binding Nature of Decisions
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In arbitration, the decision reached is legally binding and formal. However, in mediation, the decision is not binding, meaning parties must reach an agreement themselves, which allows for a more collaborative outcome.